While the FBI, along with local New Zealand law enforcement officials, staged a raid on the home of MegaUpload's founder Kim Dotcom in January, United States district court judge Liam O'Grady has now learned that the government failed to file the proper criminal papers against MegaUpload.

As a result, Judge O'Grady told the government's lawyers today, "I frankly don't know that we are ever going to have a trial in this matter." In fact, Dotcom's lawyer Ira Rothken believes it is impossible for the government to file any criminal charges since MegaUpload is located in New Zealand and not in the US.

The government could still file a civil case against MegaUpload, and people in the company like Kim Dotcom could also still be individually charged. Meanwhile, the judge is still considering the government's request to wipe all of MegaUpload's stored files, which the defense claims needs to be preserved in order to prove their case.